SERTOMA, INC.
PROCEDURES
TABLE OF CONTENTS
(Approved March, 2008)
SERTOMA, INC. – PROCEDURES
(Approved March, 2008)

GENERAL PROCEDURES

Authority
These Procedure Statements have been issued by the Board of Directors of Sertoma, pursuant to the authority granted by the Bylaws of Sertoma.

Purpose
These Procedure Statements serve to establish the standards and define the framework within which the Directors, the Executive Director, staff and volunteers will conduct the business of Sertoma.

These policies enable Sertoma to protect its exempt status and assure fair and equal treatment of all donors.

These policies guide the promotion, acceptance, receipt, management, use and disposition of funds to ensure accountability to our constituents and all regulatory agencies.

These policies and all programs and administrative procedures developed within the framework of these policies will comply with the guidelines and standards set forth by the Better Business Bureau Wise Giving Alliance.

Accountability
Accountability for oversight and implementation of these policies is the responsibility of the Executive Director and Sertoma staff. Issues not readily resolved by staff will first be referred to the Executive Committee of the Board of Directors for recommended solution. If issues cannot be resolved at this point, or if a new or amended policy or guideline is warranted, such will be referred to the full Board of Directors.

Ceremonies and Customs
Annual Theme. An annual theme will be developed by the Sertoma Headquarters staff, subject to the approval of the Executive Committee. The theme will be featured at the Sertoma Leadership Training, the International Convention, the District Leadership Conferences, and in various publications throughout the year.

Colors. The official colors of Sertoma are gold, royal blue and black, and any combination thereof may be employed.

Toast to the Nations. At Sertoma Conventions, Charter Banquets and other banquets of Sertoma, a toast will be made to the nations of Sertoma. The person leading the toast will state:

“Ladies and Gentlemen, remain standing, raise your water glasses, repeat after and drink with me: ‘A toast to the people of the ‘United States of America’ (drink and pause); ‘A toast to (each nation represented, in alphabetical order, at the event)’ (drink and pause); ‘A toast to the people of all Sertoma nations.’ (drink and pause) Please be seated.” (*The first toast should be to the nation in which the banquet is being held.)

Banner Medallions. A banner medallion shall be furnished to each club from whose membership an Officer, Director or District Governor is elected. A banner medallion shall be furnished to each club that hosts an International or Regional Convention, except that no host club will be furnished a “Convention Host” medallion until it files any required financial reports.

Flags. The official Sertoma flag and the flag of the nation where the meeting is held should be displayed at all Sertoma functions and meetings (table sets if large ones are not available). Large flags representing all countries where there are Sertoma clubs should be displayed whenever possible.

Sign Language for Sertoma. Be it known throughout all Sertoma nations that the official “Sertoma Sign” for the deaf shall be represented by crossing arms across the chest and uncrossing in an open stance.

Miscellaneous
Membership Lists/Mailing Labels. All or part of the membership lists/mailing labels of Sertoma may be provided for a reasonable sum to Sertoma Clubs or members. An exception applies to Regional Convention host clubs. The use of said lists shall be limited to the promotion of Sertoma and Sertoma activities. All requests for the purchase of membership lists/mailing labels must be in writing and must describe the proposed use of said lists.

The Executive Director of Sertoma shall determine whether to honor any and all requests for membership lists/mailing labels.

Fundraising. Excluding the restrictions noted for Conventions, Sertoma Clubs and members (on behalf of clubs) may solicit other clubs and members for the purposes of supporting official club-sponsored fundraisers. Mailing lists and labels will not be provided or sold by Sertoma for this purpose.

Sertoma Clubs and members may use the Sertoma name and logo in conjunction with official club-sponsored fundraising projects. All such uses shall be in good taste and in keeping with common business and moral standards of the community and of Sertoma.
Use of the Sertoma name or logo on any picture, object, merchandise, book, clothing item, etc., for the purpose of generating profit for any person or entity other than as outlined above and by Sertoma is expressly prohibited.

No Sertoma Club shall solicit funds or participate in any fundraising endeavor without clearly identifying the club’s name in conjunction with the project.

Temporary Power of Attorney. The Board has authorized the Sertoma Executive Director to issue a temporary power of attorney in writing to an individual as needed to finalize charitable transactions.

Amendments to the Policy Statements
The Procedure Statements may be amended at any regularly held meeting of the Board of Directors of Sertoma by a majority vote of the members of the Board of Directors.

Revisions to the Procedure Statements of Sertoma become effective at the beginning of the next fiscal year after revisions are approved by the Board of Directors, unless the Board, in its action, specifies another date.

MEMBERSHIP PROCEDURES

Code of Ethics
I affirm my allegiance to God and my country. I believe in the everlasting endurance of my country through law and order.

I believe in Sertoma and its principles of cooperation, friendship and mutual helpfulness.

I pledge myself as follows: To realize that I am a business or professional person ambitious to succeed, but that I am first an ethical person and wish no success that is not founded on the highest justice and morality. To use my greatest endeavor to evaluate the standard of the calling in which I am engaged and to conduct myself in such a way that others may find it wise, profitable and conducive to happiness to follow my example. To understand that one of the greatest assets of the business or professional person is friendship and that true friends demand nothing of one another. To abuse the confidence of friendship is unethical and not in keeping with the principles of true cooperation as adhered to by Sertoma.

Sertoma exists for the high and noble purpose of benefiting mankind at large. True Sertoma spirit is not competitive. All real Sertomans live up to the belief that true cooperation is not confined to the limits of Sertoma, but should extend to the limits of all persons.

The emblem is a badge of true fellowship, assistance and friendship, and will always stand as an ever-present reminder of the great strength of those united, and the frail weakness of the separated. The Roman fasces ever recalls the ancient lesson of the branches which it was impossible to break when bound together, but was easily destroyed when separated. It is the hope that Sertoma Clubs be bound closely together in the spirit of cooperation, fellowship and good will in Sertoma, that they will be an unbreakable power for good, advancement, helpfulness and strength in every community.

Finally, I believe that the dignity and character of industry can be sustained and improved by Sertoma, to which I fully pledge my support, and will so administer my affairs as to reflect credit on this great organization.

Substance Abuse
Sertoma staff, elected officers, directors and/or appointees shall be subject to removal of office upon conviction of a felony charge involving drugs and other illegal substances.

Campaigns for Directors and Officers
It is the policy of Sertoma that no Director or Officer can make a nominating or seconding speech at the International Convention for any candidate.

Political Issues
There shall be no official stand taken by clubs on political issues or candidates for public office.

Permanent Organization Meeting (P.O.M.) USA and Canada (Prior to Oct 1, 2007)
Sertoma Headquarters shall schedule all P.O.M.s and designate persons, preferably including a Certified Trainer, to conduct them, in consultation with the appropriate Director. Headquarters staff will confirm the date of a P.O.M. upon receipt at Headquarters of at least two (2) BANC Progress Reports, one on each of two separate pre-organizational meetings; and a tentative roster of at least twenty-five (25) bona fide (signed and paid) prospective Charter Members for the new club.

The BANC chairperson shall notify the proposed new club of a confirmed scheduled date only after consultation with Sertoma Headquarters and the Director. The P.O.M. kit will be dispatched to the designated P.O.M. representative after a P.O.M. date has been approved by Sertoma Headquarters. A two week notice must be given between the time a P.O.M. date is requested from Sertoma Headquarters and the actual P.O.M. At least sixty (60) percent of the bona fide new club members must attend the P.O.M.

Supplies USA and Canada
Newly chartered clubs will receive, at no additional cost, the following items:

  • Banner, gong, gavel, charter, table flag set.
  • Charter member lapel pins, cards, certificates, badges, decals.
  • President’s pin, Secretary’s pin.
  • Officer manuals, constitution and bylaws.
  • Five (5) one-year subscriptions to the Sertoman magazine for libraries, Chambers of Commerce, or as they designate.

Charter Requirements – Foreign Clubs
Sertoma is authorized to establish regular Sertoma Clubs in foreign countries under the following condition:

  • Approval of the Board of Directors is required, prior to the establishment of such Sertoma clubs in any country in which there are less than ten (10) presently existing clubs.

Club, Member Records and Changes
Honorary Club Members. Sertoma shall not maintain any record of honorary members of a Sertoma Club.

Deleted Club Members. Sertoma shall not maintain any records of deleted members, except inactive Life Members.

New Club Members. Sertoma shall record all new members as they are reported by club secretaries. Processing fees shall be collected as appropriate.

Club Mergers
Upon recommendation of the District Governor of the district in which both clubs are located, the Director may authorize the merger of two or more Sertoma Clubs into a single club, which merger shall become effective upon receipt of written notification to the Executive Director. If the merger creates a new club from one or more clubs, the merger becomes effective upon ratification of a new constitution and bylaws, as required by the bylaws.

Club Disbandment
In the event a Sertoma Club, through one of its officers or members, notifies Sertoma Headquarters that it no longer wishes to continue its affiliation, the following procedures shall be followed:

  • Sertoma disbands the club as of the notification date, with a letter sent to the District Governor and a copy sent to the Director.
  • When a club disbands the club must first remit from operating funds all monies owed to Sertoma. The club may distribute all remaining funds per state legislative requirements for not-for-profit corporations. Disbanded clubs are not covered under Sertoma liability insurance or considered a tax-exempt entity per IRS regulations.

GOVERNANCE PROCEDURES

Board Meetings
Meetings. One of the two Board Meetings regularly scheduled for each year shall be held in Kansas City, Missouri; the other meeting to be held at a location as designated by the Board of Directors. Other meetings will be held in such locations as designated by the Board of Directors.

Meeting Attire. All members of the Sertoma Board of Directors are requested to wear appropriate business attire with official blazers to and from the Board members’ hotel rooms and the meeting room at Conventions and when officially representing the Board on club or division visits. Business casual and/or Sertoma attire will be appropriate for other meetings.

Agenda. An agenda will be prepared in advance of all Board meetings by the Executive Director/Secretary, and he/she shall give all Board members and committee chairs the opportunity to place items on the agenda. Any agenda item being presented to the full Board for action must first be reviewed by the appropriate committee for consideration and recommendations. The agenda shall be sent by regular first-class mail.

Minutes. The Executive Director/Secretary shall mail minutes of all regular meetings of the Board of Directors and Executive Committee, within thirty (30) days after each meeting, to the members of the Board and District Governors, making such minutes available, at cost, to other Sertomans. The minutes will not be read at Board Meetings, but will be accepted as printed or corrected, as appropriate.

Past International Presidents. All Past International Presidents may receive notice of all regular Board and Executive Committee meetings, agendas and minutes upon request, at no charge.

Officers and Directors
Duties. In addition to the responsibilities of the Directors and Officers as defined in Article III, Section C of the Policy Statements, the Directors and Officers are expected to:

  • Attend all meetings of the Board of Directors.
  • Attend the International Leadership Training and International Convention.
  • Preside at the Regional Convention in that region from which elected.
  • Serve on committees or in such capacities as assigned by the Board or President.
  • Directors will provide a written report prior to each Board meeting, a summary of progress and problems being addressed by the District Governors of the region the Director represents, based on PAC (President’s Advisory Council) reports.
  • Serve as the official representative of Sertoma at all Charter Banquets held within the region from which they are elected.

Limits of Authority. When any member of the Sertoma Board of Directors insists on action that is in conflict with the Sertoma Bylaws, Policy Statements or Procedure Statements, or prior Board action, the Executive Director shall not comply with the request and shall immediately notify the members of the Executive Committee.

Lost Pins. Damaged pins of Officers and Directors shall be repaired at Sertoma expense. If such pins are not repairable or if they have been lost, they shall be replaced at the expense of the individual damaging or losing them.

Executive Committee
Authority and Responsibilities. In addition to the functions prescribed in the Policy Statements, the Executive Committee shall:

  • Be empowered to make such other decisions on an emergency basis which, in its discretion, require immediate action for the efficient functioning of the organization between meetings of the Board.
  • Make any suggestions to the Board of any matter not of an emergency nature and give its recommendations as to action to be taken by the Board.
  • Review any matter tabled to the next Board meeting and may give its recommendation as to action to be taken by the Board.
  • Review any matter referred to any other committee and in its discretion make its recommendation to that committee. If any recommendation is made, such recommendation shall be included in the report of the committee to which the recommendation is made at the next meeting of the Board.

Meetings. The Executive Committee shall hold official meetings as may be called by the President or majority of members as set forth in the Policy Statements, Article III, Section C.

Each member of the Board shall receive written notice, including an agenda, ten (10) days before any official meeting of the Executive Committee is held, except in an emergency as set forth in the Policy Statements, Article III, Section C, in which case each member shall be notified by telephone as to the location of such meeting, its time and date, and the emergency matter or matters to be the subject of such meeting.

Nominations and Elections
Standards and Authority. The standards and authority for all nominations and elections within Sertoma are defined in Article III of the Policy Statements and where not in conflict with these Policies, the most recent edition of “Robert’s Rules of Order.”

Procedures and Administration. All elections processes, including nominations, credentialing and balloting, will be administered according to the most recently approved Sertoma Election Procedural Manual.

Divisions – USA and Canada
Changing. Before requesting a change in division boundaries, the creation of a new division, or required changes in division boundaries, the involved parties should ensure that: The involved parties should obtain, where possible, the consent of the clubs involved in creating or changing division boundaries. The Board of Directors has final authority on all division matters.

Banners. New division banners required as the result of a division changing its name will be paid for by the new division. Sertoma will pay for any new division banners required as the result of the creation or change of a division made at the direction of Sertoma.

Divisions – Foreign
See division files for current operations agreement with Canadian members.

CONVENTION PROCEDURES

General

Ceremonial Procedures.

  • The official Sertoma flag and the flag of the nation where the meeting is held will be displayed at Regional Conventions. Convention planners are encouraged to display large flags representing all countries where there are Sertoma Clubs. If possible, a formal “presentation of colors” will be made at the opening session.
  • The presiding officer will convene the Convention by stating “by virtue of the authority vested in me by the Bylaws of Sertoma, I call this Convention to order.”
  • At the closing banquet, a formal toast will be made to the nations, after the invocation and prior to the meal.

Transfer of Registration Fees. Any registration fee, paid in advance by an authorized club representative to any official Convention of Sertoma, may be transferred to an alternate authorized club representative at the direction of such person.

Fundraising.

  • There shall be no solicitation of funds at Regional or District Conventions for the purpose of advancing the candidacy of any person for elective office unless the candidate is from the division involved. No fundraising will take place at or during general business or meal functions of the Convention except those authorized by and in support of Sertoma.
  • No club or person may sell raffle tickets or conduct drawings, or by any other means raise funds for local sponsorships or for any other purpose at any Convention, except as noted in bullet above.
  • Host clubs may solicit the donation of door prizes.
  • Merchandise sales at International Conventions by members or clubs are prohibited.

International Convention

Registration Fees.

  • Establishing Fees. Based on the recommendation of the Executive Director, the Executive Committee shall annually set a Convention registration fee subject to the approval of the Board of Directors. Tickets for some single events may be purchased apart from the registration fee.
  • Registration Fee Requirement. Only individuals and/or club representatives who pay the official registration fee (or receive complimentary registration) will receive a badge and be eligible to be certified to vote.
  • Complimentary Registrations. The package registration fees will be complimentary for all Past International Presidents, their spouses, as defined in the Policy Statements Article IV A-2, current international Officers, their spouses, and current Directors. Registration fees will be structured to cover the actual cost to the organization of the estimated number of complimentary registrations.

Convention Program. The Official Convention Program will be formulated by the Executive Director, subject to approval by the Executive Committee and the Board of Directors.

Convention Badges. Recognition will be given to Convention attendees as to how many Conventions each has attended, by having a special area printed on the Convention badge for recognition purposes.

Open Houses. No open houses or hospitality hours shall be scheduled during business sessions or when official Convention events are scheduled.

Fred J. Kuehne Award. A Fred J. Kuehne Award Program will be held for Sertomans attending their first International Convention. The rules for the Fred J. Kuehne Award will be determined by the Board of Directors.

International Service to Mankind Award Recipient. At each International Convention, the recipient of the current year’s International Service to Mankind Award shall be suitably recognized.

Division Conventions

Visiting Officer. The President will, subject to the approval of the Executive Committee, and subject to limitations of the budget, schedule an Officer to represent Sertoma at each of the Regional Conventions. Sertoma shall pay only the transportation costs for the Officer’s spouse, and all other expenditures specified in Travel Policy of these Procedure Statements for Sertoma Officers assigned to attend Regional Conventions.

  • Any incidental travel or meal expense incurred by an international Officer at a Regional Convention, and which is not reimbursed by the region, will be reimbursed by Sertoma as defined in Travel Policy of these Statements.

Service to Mankind Award. It is required that Regions include in their Convention budgets reimbursements to the Regional Service to Mankind Award recipient for room, meals and travel expenses.

Promotion Lists. Sertoma Headquarters will furnish a set of mailing labels of all Sertoma members within each region to the host club or clubs.


PROGRAM PROCEDURES

International Leadership Training

Participants. Those persons entitled to attend the International Leadership Training (ILT) at Sertoma expense include the Officers, Directors, District Governors, and such other persons as shall be designated to participate in the training by the Executive Committee.

Program and Curriculum. The purpose of this section is to promote continuity and consistent improvement in the content of the program. The staff will be responsible for developing the program each year and shall also select the ILT site, based upon economic considerations, for approval by the Executive Committee. The President-Elect will select what he or she would like to be emphasized in the program and so notify the Executive Director by the first day of November.

Expenses. Sertoma will provide round-trip economy airfare for approved participants. Use of personal automobile, in lieu of economy airfare, may be reimbursed at the prevailing rate permitted by the Internal Revenue Service, but will not exceed the cost of economy airfare or cheapest airfare available. All other expenses, except those provided in the ILT budget and as defined in Travel Policy of these Procedure Statements, will be the responsibility of the participants and/or their division. Complimentary suites for any Officer will be provided only as available.

Certified Trainer Program

Purpose. The purpose of the Sertoma Certified Trainer (CT) Program is to develop Sertoma members by coordinated, targeted, quality training by Sertoma volunteers utilizing the curriculum and materials provided or approved by Sertoma.

Control of the Program. Supervisory control of the Certified Trainer Program is vested in the Executive Director of Sertoma.

Certified Trainer Advisory Committee. The Certified Trainer Advisory Committee (CTAC) is an advisory body for the Certified Trainer Program. The purpose of the committee is to evaluate trainers and training; recommend policy/procedures parameters; review training of and continuing education for Certified Trainers; and support development and maintenance of training materials and methods.

  • Membership. The CTAC shall consist of six (6) Certified Trainers. The Executive Director or a designated Sertoma staff member shall also serve as a liaison to the CTAC. Appointments to the CTAC will be recommended by the Member Services Committee and approved by the Board of Directors.
  • Term. CTAC members shall serve for a three- (3) year term. They may be reappointed to the CTAC after being off the CTAC for one (1) full year.
  • Chairperson. The CTAC shall elect annually from its members a chairperson, with no individual serving more than two (2) consecutive years as chair.

Certification and Retention Requirements. Applications for the Certified Trainer Program. Applications for entry into the Certified Trainer Program may be made by any Sertoma Club member in good standing. The application shall be on a form furnished by Sertoma Headquarters. Applications shall be transmitted to the Executive Director. A copy of each application received shall be sent to the members of the CTAC for review. The CTAC chairperson shall advise the Executive Director of the committee’s recommendation, with final determination made by the Member Services Committee within the allowance of the budget and organizational need.

  • Certified Trainer Training. Successful applicants for entry into the program will be provided with specialized, advanced training, as recommended by the CTAC and approved with the budget and directed by the Executive Director or his or her assignee.
  • Continuing Education for Certified Trainers. Advanced training techniques, materials and procedures should be provided to Certified Trainers within the limits of the budget and resources.
  • Retention of Certified Trainer Status. The CTAC shall recommend requirements for retention of the Certified Trainer designation, including but not limited to amount of training provided, continuing education, evaluation by other Certified Trainers and elected Sertoma leaders, and other factors as deemed important. Procedures for evaluation, discharge from the program, re-certification and additional training are to be administered by Headquarters staff.

Travel and Training Assignments. With notification to the Executive Director, a Certified Trainer may schedule all travel and training assignments within the region in which the Certified Trainer is located, and for those assignments for which no financial reimbursement is requested from Sertoma. All travel or training assignments outside of the region in which the Certified Trainer is located, and those assignments which involve costs in which Sertoma will participate, require specific prior approval of the Executive Director. Reimbursements for trainers are defined in Travel Policy of these Procedure Statements. Such appointments will normally be of the nearest appropriate trainer. Appointments of CTs will be made in consultation with the Chairperson of the CTAC and for ILT, the President-Elect.

Political Activities by Certified Trainers. To protect the credibility of the Certified Trainer Program and to maintain a respected status in the Sertoma organization, Certified Trainers are expected to avoid public political activity in all Sertoma elections while acting in an official CT training capacity.

Awards and Incentives (to be updated based on work of Awards Task Force)

Responsibilities for Administering the Incentives and Recognition Program. The Directors will be responsible for submitting a list of all district, region and club award recipients to Sertoma Headquarters. Each award notification must be postmarked by the date established by the Board in the award guidelines. The staff will administer all Sertoma awards, including Service to Mankind, Sertoman of the Year, and any other awards so designated by the President.

Award Adjustment Guidelines. (for award year ending June 30 2008)

a. Application for Adjustments. Any Sertoman, Sertoma Club or Division, upon good cause shown, may apply for adjustment of any award in the following manner: Requests for adjustments of awards shall be directed in writing to the District Governor, or in the case of a region, the Director under whose term the majority of the award period in question falls, stating clearly the reasons for requesting such adjustments. Such requests shall either be approved or disapproved. The reasons for approval or disapproval by a District Governor will be sent in writing to the Director under whose term the majority of the award period in question falls, who shall approve or disapprove the request in writing.

i) For adjustments for items other than late reports, the Director shall forward the request and all related documents to the President under whose term the majority of the award period in question falls. The President shall approve or disapprove the request and notify the Director of his or her decision.
ii) Agreement between the Director and the President shall be considered a final ruling, placing the matter back into the hands of the requesting party, which may appeal to the Board through the appeals process described herein. In either case, the Director shall immediately notify the individual or club of the decision of the Director and President.
iii) No requests for awards adjustments shall be considered after the expiration of the Sertoma fiscal year immediately following the awards year in question.

b. Appeal of Awards Adjustment.

i) Any Sertoman, Sertoma Club or Division may appeal, in writing, to the Board for a final ruling on a request for an award adjustment that is denied.
ii) Such requests, and the written approval or disapproval of the District Governor, Director or President, shall be forwarded by Sertoma Club or Division so as to reach the Executive Director not less than thirty (30) days prior to the meeting of the Board of Directors at which such action is requested.
iii) Appeal requests will be reviewed by the Member Services Committee, which will make a recommendation to the Board of Directors to either support or not support the appeal. The vote of the Board is final and binding on all parties.

2. Award Presentations. The official policy of Sertoma is to present all Honor Club and International awards at the International Convention, with all other awards being sent to the Director or District Governor for presentation to the club or recipient, as appropriate.

FOUNDATION/DEVELOPMENT PROCEDURES

Definitions

Book Value – The total of gifts credited toward the endowment, a Center of Excellence, or a specific fund.

Market Value – The total of gifts credited toward the endowment, a Center of Excellence, or a specific fund including changes resulting from investment and distribution activity.

Center of Excellence – Predetermined categories of programs established within the Endowment of Sertoma to define distribution parameters for restricted and designated gifts.

Official Representatives – Those individuals elected by the membership, or appointed by the Board of Directors, staff or affiliated organizations to represent Sertoma. The Director of Development will maintain a current record of all Official Representatives.

Recipient Organizations – Recognized 501(c)(3) organizations that receive distributions from the endowment.

Named Fund – A recognition program that provides donors the opportunity to name an endowment fund based on a specific level of giving.

Advised Named Fund – An endowment fund established by an individual donor who in recognition of establishing the fund at a specific level has the privilege annually to recommend recipients of available distributions. The Board of Directors makes final distribution decisions. Distributions are limited to 501(c)(3) charities.

Invested Named Fund – An endowment fund established by an organization that in recognition of establishing the fund at a specific level has the privilege annually to direct the available distributions. Distributions are limited to 501(c)(3) charities.

Membership Gift – The annual membership will be considered a gift and, as appropriate, attributed to a donor’s total giving to the annual campaign.

Annual Campaign – An annual effort to provide financial support for the current operating budget or otherwise as approved by the Board of Directors of either Sertoma or a designated affiliated organization. Use can be unrestricted, restricted or designated.

Endowment Gifts – Gifts given to provide permanent income through earnings on a protected principal. Based on conditions of the original gift, use can be either donor or Board-designated.

  • Unrestricted Gifts – Use of the earnings from these gifts is designated by the Board within the guidelines established by the budget.
  • Restricted (Center of Excellence Gifts) – Earnings from these gifts are restricted for use within a specific functional area as determined by the Board or the appropriate affiliated organization. The Board determines Centers of Excellence.
  • Designated (includes all gifts to Invested and Advised Funds) – Use of the earnings from these gifts are designated by the original donor or their assignee, and may only be used for that specific purpose. All designations are subject to approval by the Board of Directors.

Annual Gifts – Gifts given in support of annual operations, programs and services provided for or supported by Sertoma.

  • Unrestricted Gift – Gifts used in the best interest of Sertoma. The Board and Executive Director direct the use of these gifts through the annual budget.
  • Restricted Gift – Gifts with preferred area of use specified by the donor. Designated use determined by the Board or the Executive Director.
  • Designated Gift – Funds donated for a specific purpose or use agreed upon by the donor and Sertoma.

General

Mission. Sertoma will only accept gifts that are consistent with the advancement of its mission.

Ethics. All giving programs will be conducted in accordance with high standards at all levels; including a competent staff, engagement of qualified counsel, and adherence to all applicable federal and state governmental regulations. Sertoma and all authorized to solicit or accept gifts subscribe to the Code of Ethical Principles and Standards of Professional Practice of the Association of Fundraising Professionals and the National Committee on Planned Giving.

Authority. No individual, affiliated or recipient organization will solicit funds in the name of, or on behalf of, Sertoma unless authorized to do so by the Board of Directors, the Executive Director or their designee.

Clearance. The Executive Director or their designee must approve all solicitations in advance.

Acceptance. Designated gifts in excess of $25,000 may be received by the Executive Director or their designee; however, only the Board of Directors or the Executive Committee can officially accept these gifts. A majority vote of the executive committee is required to accept these types of gifts. Non-endowment gifts under $25,000 can be accepted by the Executive Director or the Director of Development. Exceptions maybe granted for pre-approved projects or funds.

Restricted gifts, grants or planned gift instruments restricted to current Centers of Excellence or the current budget may be received by any current official representative of Sertoma. The Executive Director, Director of Development or their designee can officially accept these gifts.

Unrestricted Gifts of any value can be received and accepted by any official representative of Sertoma.

All gifts of personal or real property, and planned gift instruments will be accepted only after review and recommendation of the Executive Director, Director of Development and approval of the Board as described within the Planned Giving and Gift Formats section of these Procedure Statements.

Gift Formats. Sertoma approves acceptance of the following gift formats. See Gift Formats Section for detail:

  • Cash, securities or other cash equivalents;
  • Gifts by will or from revocable trusts;
  • Gifts of life insurance;
  • Gifts through charitable lead trusts;
  • Gifts with charitable remainder interests which would include: charitable gift annuities and deferred payment annuities; charitable remainder unitrusts and annuity trusts;
  • Gifts of undivided interests in property, including residences and farms, with or without a life interest;
  • Gifts of qualified retirement plans;
  • Gifts of personal property or other assets such as works of art.

Pass-Through Gifts. Sertoma does accept pass-through gifts designated for its affiliated organizations. All gifts are subject to the approval of the Executive Director or the Executive Committee as defined in these policies.

Promises to Give. The Executive Director, Director of Development or their assignees may solicit promises to give on behalf of Sertoma. These promises to give will be recorded in the accounting records according to the guidelines established by Financial Accounting Standards Board Statements 116 and 117. All promises to give must be submitted in writing to Sertoma. Promises to give may not exceed five (5) years in duration. Any donor requesting a promise to give greater than five (5) years in duration must have approval from the Sertoma Treasurer and Executive Director prior to being accepted. Promises to give of this type must have written documentation as to the reasons pertaining to the extended length. Once approved, notice will be given to the Board of Directors. All promises to give that have exceeded their duration or have not made payment in three (3) years will be written off by the Director of Finance/Administration with notice to the Sertoma Treasurer and Executive Director.

Gift Value. No individual in the employ of Sertoma will confirm the value of a gift, other than gifts of cash or readily marketable securities.

Administrative and Overhead Costs. All designated funds and gifts will include allowance for administrative and overhead costs associated with management and distribution of those funds or gifts.

Recognition and Stewardship

Quid Pro Quo. It is the policy of Sertoma that all recognition and stewardship programs are structured as to not create a “quid pro quo” contribution as defined by the IRS.

Annual Gifts. All non-campaign related gifts will be credited toward the donor’s total giving for annual recognition. Recognition will be provided in the Annual Report of Sertoma, at the International and Regional Conventions of the affiliated organizations, and as otherwise defined by the annual development plan.

Accumulated Giving. Sertoma authorizes the establishment of a recognition society, the Life Patrons, to provide stewardship and recognition for the accumulated lifetime giving of its donors. The members of the society will receive recognition in the Annual Report of Sertoma, at the International and Regional Conventions, and as otherwise defined by the annual development plan.

Planned Gifts. Sertoma authorizes the establishment of a recognition society to provide continued stewardship and recognition of individuals who make planned gifts. Iindividuals will be given membership in the society by notifying Sertoma in writing that they have made a planned gift with Sertoma as beneficiary. The members of the society will receive an annual report on the status and impact of the planned giving program as well as an update on the endowment of Sertoma.

At the time a gift is made, donors must indicate their desire to be anonymous, or their willingness to have their name published. Public announcements or other publicity concerning gifts not indicated as anonymous, are the prerogative of Sertoma. Donors or members of a deceased donor’s immediate family will be consulted, and their approval will be sought, before gifts are made public.

Campaign Recognition. The Board of Directors reserves the right to establish special recognition programs for gifts made through an endowment or capital campaign. Such recognition programs will be defined in the campaign plan and will be limited to those gifts given specifically to that campaign.

Named Endowments. In recognition of a gift of $25,000 or more to the endowment, the donor may name the fund. Donors also have the privilege to designate a gift’s purpose within the guidelines established for advised or invested funds in the endowment management section of these Procedure Statements. All naming opportunities require the approval of the Board or its assigned committee prior to acceptance of the gift.

Stewardship of Endowment. The Annual Report of Sertoma will include a report on the endowment, which will include the following:

  • Current book value of the endowment by Center of Excellence
  • Total of new gifts to the fund during the past fiscal year
  • Changes in value of fund due to investment activities for the past fiscal year
  • Current market value
  • Proceeds distributed for the past fiscal year
  • Impact statement on the use of distributed funds

In addition, donors who have established a named endowment will receive annually an individual report, which will include the following:

  • Current book value of the fund
  • New gifts to the fund during the past fiscal year
  • Changes due to investment activities for the past fiscal year
  • Current market value
  • Proceeds distributed for the past fiscal year

 

Planned Giving

Purpose of the program. The Planned Giving Program offers gift opportunities for donors who want to provide philanthropic support to Sertoma through financial or estate planning. The planned giving program will assist donors by informing them of philanthropic techniques that are best suited to achieving their objectives while providing a positive benefit to Sertoma.

Donor objectives include, but are not limited to, the following:

  • Offering donors the opportunity to retain life income from their capital while making revocable and irrevocable commitments to Sertoma.
  • Enabling donors to make significant gifts during life that might not have been possible without income retention.
  • Allowing donors to provide benefits for family and other desired beneficiaries.
  • Encouraging estate planning and the preparation and maintenance of up-to-date wills.
  • Ensuring donors achieve full realization of the positive tax consequences of their generosity.

Responsibilities and Authorities. Any gift that does not meet the requirements of these policies must be reviewed and approved by the Major and Planned Gifts Committee before acceptance. In the event a gift is accepted that legally obligates Sertoma, the President and the Executive Director are the only authorized signatories. The Board of Directors reserves the right to decline any bequest or gift if it is determined that the gift is not in the best interest of Sertoma or the donor.

Planned Gifts Value. The value of planned gifts will be determined by the prevailing legal or national standard of practice. The board can count gifts internally as expectancies and may elect to disclose these values in the footnotes of the audited financial statement.

Legal Counsel. Donors will be advised to seek their own counsel (including tax advisors) in all aspects of a proposed gift. Legal counsel will be used by Sertoma as determined by the Executive Director, the Director of Development, or the Major and Planned Gifts Committee.

Separate Directors. When a gift format requires a trustee, donors are encouraged to use their bank or another trustee of their choice. Sertoma shall not act as trustee.
Ethical Practices. In addition to the Principles and Standards of the Association of Fundraising Professionals, all individuals authorized to solicit or accept planned gifts for Sertoma will subscribe to the standards of practice defined by the National Committee on Planned Giving.

These standards include, but are not limited to:

  • The Executive Director, Director of Development or their assignee will represent themselves as development professionals only and not as a legal, financial or tax advisors. A disclaimer on any written proposal will advise the donor the proposal be reviewed by their own financial or legal counsel.
  • The Planned Giving Program is donor-oriented. In all matters involving donors or donor prospects, their needs are a primary consideration in that no agreement, charitable trust, or other commitment shall be urged upon a donor at the expense of their better interest, even if this results in a smaller gift or no gift.
  • No planned gift will be accepted that has potential negative financial implications for Sertoma.
  • Donor requests for anonymity are always honored. Exceptions to this confidence will be when Sertoma is required by law to make information available to the Internal Revenue Service and other federal and state agencies.

Memorial Gifts

Memorial gifts are designated or undesignated contributions given in memory or honor of someone.

  • Unrestricted Gift. Gifts made are to be deposited immediately into the Service to Mankind (General Purpose) Fund located within the Endowment Centers of Excellence.
  • Restricted Gift. Gifts restricted to a Center of Excellence specified by the donor. Designated use determined by the Board of Directors or the Executive Director.
  • Designated Gift. Funds donated for a specific purpose or use agreed upon by the donor and Sertoma.

Gift Formats

Cash and Securities. The Executive Director, Director of Development or their assignees may solicit gifts of cash and intangible personal property including stocks and bonds traded on the open market. Other securities such as closely held stock, zero-coupon bonds, and commercial paper may be accepted only upon review of their marketability. No such gift shall be accepted that requires a financial commitment or risk from Sertoma. Gifts of intangible personal property will normally be sold immediately. However, Sertoma retains the right to decide if and when any security should be sold.

Wills and Revocable Trusts. The Executive Director, Director of Development or their assignees may solicit estate gifts through wills or revocable trusts. Sertoma will encourage donors to inform the development office of the existence of such provisions. No member of Sertoma’s staff shall draft or prepare the will or testamentary letter of a donor. Estate gifts may consist of cash or specific assets such as trusts, securities or other cash equivalents as well as gifts of personal property or real estate. These gifts can be given as a set amount of money, a percentage of the estate, a remainder of the estate, or a contingency gift.

Qualified Retirement Plans. The Executive Director, Director of Development or their assignees may solicit gifts from qualified retirement plans. The organization can be named as beneficiary to eligible retirement and supplemental retirement plans. Donors should be encouraged to consider this method of giving to obviate double taxation (taxation on income to the decedent as well as applicable estate taxes).

Gifts of Life Insurance. The Executive Director, Director of Development or their assignees may solicit gifts of life insurance. Donors can make gifts of life insurance by (1) purchasing new policies and naming Sertoma as owner and beneficiary, (2) by assigning ownership and beneficiary rights of existing policies to Sertoma, or (3) naming Sertoma only as beneficiary.

As owner of any policy, Sertoma will pay any premiums due if the donor makes a gift in like amount to Sertoma. In the event that the donor decides not to make a gift of the premium amount to Sertoma or pay the premiums directly, Sertoma may decide to make such payments or to discontinue payments.

Approved types include whole life, universal life by its numerous trade names, and variable life. Ownership by Sertoma of straight term insurance is not approved. However, the donor may designate Sertoma as a beneficiary on term insurance.

Gift Annuities. The Executive Director, Director of Development or their assignees may solicit gift annuities. The gift annuity agreement provides a gift to the organization in exchange for a designated income for life and a tax benefit to the donor. The income amount is determined from the “Uniform Gift Annuity Rates” adopted by the American Council on Gift Annuities. Sertoma will follow these rates unless the Planned Giving Committee approves an exception. Use of these gifts will be restricted to supporting the income agreement until the death of the donor.

The Executive Director, Director of Development or their assignees will prepare illustrations and proposals that demonstrate the income and impact of a gift annuity. It is recommended that gift annuities will be a minimum of $10,000.

Charitable Lead Trusts. The Executive Director, Director of Development or their assignees may solicit gifts in the form of charitable lead trusts. The lead trust first makes payments to Sertoma and then passes its assets back to the donor or others selected by that individual after a specific period. Donors can make additional contributions to lead unitrusts.

Lead trust agreements will be governed by the following:

  • The recommended minimum amount for a lead trust shall be $300,000.
  • The trust term will be specified by a number of years or by the life of one or more named individuals who are living when the trust is created. The minimum term shall be five (5) years.
  • Income payments to Sertoma may be through either an annuity trust or unitrust instrument.
  • Donors and beneficiaries may be any age.
  • The lead trust can be created by will or lifetime trust agreements.

Charitable Remainder Annuity Trusts and Unitrusts. The Executive Director, Director of Development or their assignees may solicit gifts of charitable remainder annuity trust and unitrust agreements. The charitable remainder trust provides a donor the ability to transfer property to the organization and receive an annual income from the value of the trust. This benefit continues for the life of the donor or the joint lives of two (2) donors, or for a period not to exceed twenty (20) years.

An annuity trust pays the beneficiary a fixed percentage (no less than 5 percent) of the initial fair market value. Initial value is fixed at the time the trust is established. If, in any year, the income is insufficient to cover the annual payments, the difference shall be paid from the principal.

A unitrust pays the beneficiary a fixed percentage (not less than 5 percent) of the fair market value of the trust determined annually. By law, a unitrust cannot have more than a fifty (50) percent maximum payout and not less than a ten (10) percent charitable remainder. If, in any year, the income is insufficient to cover the annual payments, the difference shall be paid from the principal.

Remainder trust agreements will be governed by the following:

  • Management fees must be paid from trust principal unless prevented by specific nature of trust agreement, such as net income trusts.
  • No trust shall be established for less than a five- (5) percent payout or more than a ten- (10) percent payout, without approval of the Planned Giving Committee.
  • The recommended minimum amount for establishing a remainder trust shall be $100,000.

Gifts of Real Estate. The Executive Director, Director of Development or their assignees may solicit gifts of unencumbered real estate. Gifts of real estate are accepted only with the approval of the Executive Committee of the Board of Directors.
Gifts of real estate will be governed by the following:

  • A minimum gift of $50,000 is required.
  • Gifts of real estate shall be irrevocable.
  • Such gifts will be accepted with the understanding that the real estate can be sold immediately with proper notification to the Internal Revenue Service, via Form 8282.
  • No restrictions on the future use of the property may be placed by the donor.
  • A Phase I Environmental Site Assessment will be made prior to the acceptance of real estate. A Phase II Environmental Site Assessment may be required based on the findings of Phase I. These assessments are the responsibility of the donor.
  • Donor must provide clear title.
  • Real estate gifts shall be valued at the fair market value. The donor and the organization will provide qualified appraisals of the property. If the two appraisals vary significantly, then a third appraisal should be sought. Where a sale is imminent and the donor agrees, an appraisal separate from the sale is not required. The sale price will document the value.
  • Written agreements for gifts of real estate must include provisions for payment of expenses including, but not limited to, finder’s, broker’s and realtor’s fees, taxes and assessments, insurance and cost of maintenance.

Gifts of Residence or Farm with a Retained Life Estate. Gifts of real estate in the form of a residence or farm can include a retained life estate. Retained life estate gifts will also be governed by the following:

  • Life estates will be limited to two (2) beneficiaries.
  • Donors may continue to reside in or farm such property, or may lease the property, provided such lease shall be a year-to-year lease.
  • The donor is responsible for maintenance, taxes, etc. as he/she maintains a “life estate” in the property.
  • If the property is sold during the period of the life estate, proceeds of the sale will be divided between the donor and the organization based upon the value of the life estate interest at the time of the sale.

Personal Property. The Executive Director, Director of Development or their assignees may solicit gifts of tangible personal property. Such gifts might consist of collections, paintings and other personal property, not including real estate. Sertoma reserves the right to refuse gifts that do not directly further the mission of Sertoma. The donor will be informed that Sertoma policy is to sell such gifts unless they serve a function for Sertoma or are to be used to enhance the aesthetic environment of Sertoma Headquarters.

The donor will be made aware that the gift must be put to a use “related to” the exempt mission of Sertoma in order to receive a tax deduction for the full fair market value. Otherwise, the tax deduction is limited to the property’s basis (cost) or fair market value, whichever is less.

The donor will be informed that a qualified appraisal is required to claim a tax deduction for a gift of one or more similar items with an aggregate value of $5,000 or more. Also, IRS Form 8283 must be completed by the donor and attached to the donor’s tax return when claiming a deduction.

Charitable Funds Endowment

Endowment funds are assets that provide support in perpetuity. The endowment funds are invested, and a portion of the investment return provides support for approved programs and services.

A donor’s gift to the endowment is considered pure endowment. The Board of Directors can designate funds as endowment. These funds, known as board-designated funds, are treated as endowed until the Board changes its designation.

Centers of Excellence.
The endowment is structured into Centers of Excellence to give donors the opportunity to designate their funds area of interest.

  • Sertoma Youth